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To: zbyslaw owczarczyk who wrote (3222)	4/25/2001 1:35:29 AM
From: elmatador	Read Replies (1) \| Respond to of 3891

Verizon follows telcos' lead and cuts spending by $1bn By Richard Waters in New York Published: April 24 2001 22:45GMT \| Last Updated: April 24 2001 23:05GMT Verizon Communications sliced $1bn from its capital spending plans for this year as it reported a 4.3 per cent increase in underlying earnings to 72 cents a share in the first quarter, in line with expectations. The reduced investment plans, which would leave capital spending level with last year's $17.5bn, echo moves by other big US telecoms carriers to trim their capital budgets. While AT&T said on Tuesday that it had not altered its forecast of $14bn in capital spending this year, both Qwest and SBC Communications have shaved their investment outlook. Verizon attributed the cut in spending to the fierce competition among providers of telecoms equipment, which are struggling with an inventory overhang amidst a collapse in demand for their products. The New York-based Baby Bell also repeated its forecast that earnings per share this year would reach $3.13-$3.17, despite the US economic slowdown. Its biggest rival, SBC, trimmed its own forecasts earlier this week, largely because of the effects of the power crisis and technology industry retrenchment in California. During the latest quarter, Verizon said it had added 500,000 new long-distance customers, taking the total to 5.2m, and 180,000 DSL customers, leaving it with 720,000. It did not disclose revenues from either business. VERY SUSPICIOUS. VERY SUPICIOUS! Revenues from data services climbed 28 per cent to $1.7bn while revenues from wireless increased 17 per cent to $4bn. GOOD. VERY GOOD. Underlying earnings, before one-off items, reached $2bn, or 72 cents a share, compared with $1.9bn, or 69 cents a share, the year before. Revenues rose 7 per cent to $15.2bn, after an adjustment to reflect last year's creation of Verizon Wireless, a joint venture with Vodafone. Including one-off charges and gains, Verizon reported net income of $1.6bn, or 58 cents a share.